LEM stands for Leader Evaluation Manager and it’s a tool that has been implemented at GVMH to raise the accountability of leaders and help them focus attention on the important aspects of their job. Every manager at GVMH with hiring and firing authority will be evaluated at the end of the current fiscal year through LEM and their compensation will be tied to performance on a set of specific goals.
Each manager has between 5 and 8 goals that are weighted based on importance to the success of their department or the success of the organization and performance on those goals will determine compensation adjustment at the end of the year. Each goal will be rated 1 – 5 based on performance with 3 being the goal. A score of 4 or 5 would be exceeding goal and a score of 1 or 2 would be underperformance.
For example one of the goals on my LEM is to have year to date expense as a percent of net revenue for those departments that report to me to be equal to or less than 10.5%. My 3 rating is 10.5%. Anything less than 10.5% will exceed goal and anything more than 10.5% will be less than goal and require attention. This goal is weighted at 20% of my total evaluation and will determine up to 20% of my compensation increase should I perform well enough to warrant an increase.
This particular goal is important because it looks at revenue and expense in the departments that I’m responsible. For any business to be successful revenue must exceed expense just like your check book at home. If you have money left in your checking account after paying all of your bills you’re in good shape. If you don’t have enough money in your checking account to pay your bills it means your expenses have exceeded your revenue and it gets difficult to make ends meet.
I have at least one goal in each of our four Critical Success Factor Areas: Customer, Quality, People and Financial and it’s important to me to be totally transparent so I am going to list my goals below for you to see. If at any point in the year you’d like to know my performance, just ask and I will post my results. You may ask, “why would he put his goals on the internet for all the world to see”. The answer is easy, because of my areas of responsibility my goals have a direct impact on the success of the organization. If my goals are met, the organization will have been successful which is important to every staff person at GVMH and the community.
Here are my goals:
Customer: Achieve an interdepartmental satisfaction score of 4.5. The departments that report to me will be surveying other departments in the organization to be sure they are meeting their needs. Interdepartmental cooperation is important to the outcome of a patient so I need to know that departments are working well together.
Customer: Increase outpatient top box rating to the 60th percentile. My responsibility extends to most of our outpatient activity and its important that we have high patient satisfaction. We use HealthStream to measure patient satisfaction and I want over 85% of the responses we get from our patients to rate us as a 9 or 10 which is top box. We are compared to other hospitals in the survey process.
Quality: Those departments that report to me all have a quality goal and their goal reflects on their ability to produce a reliable, quality driven healthcare product. My goal is for those departments to meet their goal. A focus on quality is a priority and its what’s best for our patients.
People: Personal goal accomplishment of 70%. These aren’t my personal goals, these are the goals of the hundreds of staff in the departments I’m responsible for. Every staff person creates personal goals that are built around their departmental goals. I want to help staff achieve their goals because that means departments are making progress towards achieving the goals they’ve established.
People: Desired retention of 81% across all of my reporting departments. Good people are hard to find and expensive to replace. We need to work hard to keep the staff we believe are positive contributors to the team.
Financial: Maintain YTD expenses below 10.5% of gross revenue. I explained this goal above.
Financial: Maintain YTD productivity at or below 100% of budget. We budget staffing and volume each year and that budget drives our revenue forecast. If we are not productive it means our revenue is falling short. Productivity is driven by volume and staffing. If volume goes up, staffing can go up. If volume goes down, staffing needs to go down.
These are my goals, let me know if you want to know how I’m performing throughout the year. My goals have an impact on me but they may just have an impact on you as well which is why I’m happy to share the results.